Judge: IRS Can Seek Tax Info From UBS

MIAMI -- A federal judge agreed Tuesday to allow the IRS to serve legal papers on Swiss banking giant UBS AG in an expanding investigation into U.S. taxpayers who may have used overseas accounts to hide assets and avoid taxes, the Associated Press reported.

An order signed by Judge Joan A. Lenard of Federal District Court in Miami gives prosecutors and the IRS the authority to request the information, the New York Times reported. It was unclear whether UBS would turn over the names or appeal the process.

The summons, according to the AP, will allow the IRS to obtain information about American taxpayers who have UBS accounts but did not file required forms detailing their taxable income.

Federal prosecutors have accused UBS of helping American clients hide $20 billion overseas in secret offshore accounts, evading $300 million or more in taxes, the Times reported.

The IRS and prosecutors want UBS to turn over the names of all American clients who had accounts from December 2002 through 2007 at the Swiss offices of UBS, its subsidiaries or affiliates — and for which UBS did not have a W-9 tax form, the Times reported.

-- NYSSCPA.org News Staff

Posted on 7/2/08